This week the S&P 500 accomplished something it had not done since November 2021, namely having a perfect week with new record highs on all five days. Coming off the previous Thursdays new record high and Fridays loss of less than one point, on Monday the S&P 500 closed above 6,300 for the first time ever. The bull continued into Tuesday as Indonesia and the Philippines tariff deals were completed, driving the S&P 500 up another four points to record #2. Overnight a Japan deal was announced and the S&P 500 gapped up at the open, having its best day of the week and record #3. After Wednesdays closing bell the first of the Magnificent Seven megacap stocks reported their earnings with Alphabet posting a second-quarter earnings and revenue beat. On Thursday Trump met with Fed Chair Powell at the central bank, which was only the fourth such visit in its history, and from there it was record #4 as the S&P 500 tacked on another five points. On Friday we received an earnings season update, with 83% of the 155 S&P 500 companies that have reported to date beating Wall Streets expectations. And there you have S&P 500 record #5, closing out that perfect week. While Fridays S&P 500 record close was the 14th of the year, lets look back to that previous eight-day record streak between 28 October and 8 November 2021, when the S&P 500 closed at 4,701, and today its Dj vu all over again (as Yogi would say!). From our 5 November 2021 Weekly Update, On Wednesday, the Federal Reserve made the long-awaited announcement that the central bank will slow the monthly bond purchases that were implemented during the pandemic.On Friday, the October jobs report came in better than expected. Also, earnings season continues with strong numbers being reported across the boardFor TSP TIPS the C and S funds stood out. Mimicking the S&P 500, the C fund also hit new record highs every day this week, and seven in a row. The S fund alternated days and hit new highs on Monday, Wednesday and Friday. With their Performance Rankings almost equal, our current allocation remains solid. So does history repeat itself? Next Wednesday we have the Fed Rate decision with the possibility of a rate reduction. On Wednesday and Thursday we get Microsoft, Meta, Apple and Amazon earnings reports. Finally, on Friday we get the employment and payroll numbers. And with the S&P 500 closing Friday at 6,388, were up about 1,700 since that 8 November 2021 close. For TSP TIPS the C fund mimicked the S&P 500 also hitting new record highs every day this week, and seven in a row (Not a typo, actually the same as the 5 November 2021 update). The I fund also hit an all-time high on Wednesday, and all three equity funds (C/S/I) had nearly 1% or greater weekly gains, while having Composite Scores maxed out at 100. Looking at Performance Rankings (PR), the C fund now tops the PR leaderboard with a score of 13.02%, followed closely by the S fund at 12.76%, followed by the I fund at 11.90%. Since the PR spread is pretty close between the three funds, we recommend no changes in our Moderate and Conservative models. However, we are recommending a new investment mix for the C fund as it is also on a record setting streak and has that #1 PR position. And with four of the Mag 7 stocks reporting next week, and all seven accounting for 34.1% of the S&P 500s total market capitalization, the C fund will hopefully see a bullish move similar to Alphabets earnings report pop last week.
This week the S&P 500 accomplished something it had not done since November 2021, namely having a perfect week with new record highs on all five days. Coming off the previous Thursdays new record high and Fridays loss of less than one point, on Monday the S&P 500 closed above 6,300 for the first time ever. The bull continued into Tuesday as Indonesia and the Philippines tariff deals were completed, driving the S&P 500 up another four points to record #2. Overnight a Japan deal was announced and the S&P 500 gapped up at the open, having its best day of the week and record #3. After Wednesdays closing bell the first of the Magnificent Seven megacap stocks reported their earnings with Alphabet posting a second-quarter earnings and revenue beat. On Thursday Trump met with Fed Chair Powell at the central bank, which was only the fourth such visit in its history, and from there it was record #4 as the S&P 500 tacked on another five points. On Friday we received an earnings season update, with 83% of the 155 S&P 500 companies that have reported to date beating Wall Streets expectations. And there you have S&P 500 record #5, closing out that perfect week. While Fridays S&P 500 record close was the 14th of the year, lets look back to that previous eight-day record streak between 28 October and 8 November 2021, when the S&P 500 closed at 4,701, and today its Dj vu all over again (as Yogi would say!). From our 5 November 2021 Weekly Update, On Wednesday, the Federal Reserve made the long-awaited announcement that the central bank will slow the monthly bond purchases that were implemented during the pandemic.On Friday, the October jobs report came in better than expected. Also, earnings season continues with strong numbers being reported across the boardFor TSP TIPS the C and S funds stood out. Mimicking the S&P 500, the C fund also hit new record highs every day this week, and seven in a row. The S fund alternated days and hit new highs on Monday, Wednesday and Friday. With their Performance Rankings almost equal, our current allocation remains solid. So does history repeat itself? Next Wednesday we have the Fed Rate decision with the possibility of a rate reduction. On Wednesday and Thursday we get Microsoft, Meta, Apple and Amazon earnings reports. Finally, on Friday we get the employment and payroll numbers. And with the S&P 500 closing Friday at 6,388, were up about 1,700 since that 8 November 2021 close. For TSP TIPS the C fund mimicked the S&P 500 also hitting new record highs every day this week, and seven in a row (Not a typo, actually the same as the 5 November 2021 update). The I fund also hit an all-time high on Wednesday, and all three equity funds (C/S/I) had nearly 1% or greater weekly gains, while having Composite Scores maxed out at 100. Looking at Performance Rankings (PR), the C fund now tops the PR leaderboard with a score of 13.02%, followed closely by the S fund at 12.76%, followed by the I fund at 11.90%. Since the PR spread is pretty close between the three funds, we recommend no changes in our Moderate and Conservative models. However, we are recommending a new investment mix for the C fund as it is also on a record setting streak and has that #1 PR position. And with four of the Mag 7 stocks reporting next week, and all seven accounting for 34.1% of the S&P 500s total market capitalization, the C fund will hopefully see a bullish move similar to Alphabets earnings report pop last week.